Here’s the Tax Burden on the Bottom 20% in Every State
The U.S. has a progressive income tax system. That doesn’t refer to any sort of political influence on the system. Instead, it means that tax rates are lower for people who earn less and rise as income rises — so, ideally, those who make more carry more of the tax burden.
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Currently, the federal income tax rates range from 10% to 37%. You fall into the lowest tax bracket for the 2021 filing year if you’re single and your income is $9,950 or less, or $19,900 or less if you’re married filing jointly. However, taxpayers in the lowest bracket typically don’t owe federal tax because their income is lower than the standard deduction.
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But that doesn’t mean that low-income households escape paying taxes altogether. Their income might be low but not low enough to avoid federal income taxes. Plus, state and local taxes can take a bite out of limited incomes.
Here's the tax burden on the bottom 20% in every state.
Last updated: Aug. 3, 2021
1. Alabama
Average income of the bottom 20%: $10,538
Single filers:
Total income taxes paid: $1,168
Tax burden: 11.08%
Married couples filing jointly:
Total income taxes paid: $908
Tax burden: 8.61%
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2. Alaska
Average income of the bottom 20%: $18,977
Single filers:
Total income taxes paid: $2,095
Tax burden: 11.04%
Married couples filing jointly:
Total income taxes paid: $394
Tax burden: 2.09%
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3. Arizona
Average income of the bottom 20%: $13,587
Single filers:
Total income taxes paid: $1,174
Tax burden: 8.64%
Married couples filing jointly:
Total income taxes paid: $1,039
Tax burden: 7.65%
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4. Arkansas
Average income of the bottom 20%: $11,049
Single filers:
Total income taxes paid: $1,135
Tax burden: 10.28%
Married couples filing jointly:
Total income taxes paid: $1,031
Tax burden: 9.33%
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5. California
Average income of the bottom 20%: $15,827
Single filers:
Total income taxes paid: $1,677
Tax burden: 10.59%
Married couples filing jointly:
Total income taxes paid: $1,279
Tax burden: 8.08%
6. Colorado
Average income of the bottom 20%: $17,187
Single filers:
Total income taxes paid: $2,575
Tax burden: 14.98%
Married couples filing jointly:
Total income taxes paid: $2,111
Tax burden: 12.28%
7. Connecticut
Average income of the bottom 20%: $16,569
Single filers:
Total income taxes paid: $2,298
Tax burden: 13.87%
Married couples filing jointly:
Total income taxes paid: $1,765
Tax burden: 10.65%
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8. Delaware
Average income of the bottom 20%: $15,768
Single filers:
Total income taxes paid: $1,910
Tax burden: 12.11%
Married couples filing jointly:
Total income taxes paid: $1,438
Tax burden: 9.2%
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9. Florida
Average income of the bottom 20%: $13,086
Single filers:
Total income taxes paid: $1,055
Tax burden: 8.06%
Married couples filing jointly:
Total income taxes paid: $1,001
Tax burden: 7.65%
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10. Georgia
Average income of the bottom 20%: $12,798
Single filers:
Total income taxes paid: $1,303
Tax burden: 10.18%
Married couples filing jointly:
Total income taxes paid: $1,161
Tax burden: 9.07%
11. Hawaii
Average income of the bottom 20%: $17,980
Single filers:
Total income taxes paid: $2,672
Tax burden: 14.93%
Married couples filing jointly:
Total income taxes paid: $1,804
Tax burden: 10.04
12. Idaho
Average income of the bottom 20%: $13,921
Single filers:
Total income taxes paid: $1,219
Tax burden: 8.75%
Married couples filing jointly:
Total income taxes paid: $1,065
Tax burden: 7.65%
13. Illinois
Average income of the bottom 20%: $14,052
Single filers:
Total income taxes paid: $1,921
Tax burden: 13.67%
Married couples filing jointly:
Total income taxes paid: $1,771
Tax burden: 12.60%
14. Indiana
Average income of the bottom 20%: $13,570
Single filers:
Total income taxes paid: $1,578
Tax burden: 11.63%
Married couples filing jointly:
Total income taxes paid: $1,476
Tax burden: 10.88%
15. Iowa
Average income of the bottom 20%: $14,836
Single filers:
Total income taxes paid: $1,537
Tax burden: 10.36%
Married couples filing jointly:
Total income taxes paid: $1,145
Tax burden: 7.72%
16. Kansas
Average income of the bottom 20%: $14,449
Single filers:
Total income taxes paid: $1,650
Tax burden: 11.42%
Married couples filing jointly:
Total income taxes paid: $1,320
Tax burden: 9.14%
17. Kentucky
Average income of the bottom 20%: $10,912
Single filers:
Total income taxes paid: $1,248
Tax burden: 11.44%
Married couples filing jointly:
Total income taxes paid: $1,116
Tax burden: 10.22%
18. Louisiana
Average income of the bottom 20%: $9,757
Single filers:
Total income taxes paid: $941
Tax burden: 9.65%
Married couples filing jointly:
Total income taxes paid: $941
Tax burden: 9.65%
19. Maine
Average income of the bottom 20%: $13,702
Single filers:
Total income taxes paid: $1,239
Tax burden: 9.04%
Married couples filing jointly:
Total income taxes paid: $1,048
Tax burden: 7.65%
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20. Maryland
Average income of the bottom 20%: $18,854
Single filers:
Total income taxes paid: $2,806
Tax burden: 14.88%
Married couples filing jointly:
Total income taxes paid: $2,067
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21. Massachusetts
Average income of the bottom 20%: $15,520
Single filers:
Total income taxes paid: $2,260
Tax burden: 14.56%
Married couples filing jointly:
Total income taxes paid: $1,963
Tax burden: 12.65%
22. Michigan
Average income of the bottom 20%: $13,156
Single filers:
Total income taxes paid: $1,626
Tax burden: 12.36%
Married couples filing jointly:
Total income taxes paid: $1,565
Tax burden: 11.9%
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23. Minnesota
Average income of the bottom 20%: $17,300
Single filers:
Total income taxes paid: $2,060
Tax burden: 11.92%
Married couples filing jointly:
Total income taxes paid: $1,323
Tax burden: 7.65%
24. Mississippi
Average income of the bottom 20%: $9,367
Single filers:
Total income taxes paid: $920
Tax burden: 9.81%
Married couples filing jointly:
Total income taxes paid: $830
Tax burden: 8.86%
25. Missouri
Average income of the bottom 20%: $13,281
Single filers:
Total income taxes paid: $1,101
Tax burden: 8.29%
Married couples filing jointly:
Total income taxes paid: $1,016
Tax burden: 7.65%
26. Montana
Average income of the bottom 20%: $13,337
Single filers:
Total income taxes paid: $1,277
Tax burden: 9.58%
Married couples filing jointly:
Total income taxes paid: $1,067
Tax burden: 8%
27. Nebraska
Average income of the bottom 20%: $15,168
Single filers:
Total income taxes paid: $1,674
Tax burden: 11.04%
Married couples filing jointly:
Total income taxes paid: $1,189
Tax burden: 7.84%
28. Nevada
Average income of the bottom 20%: $14,239
Single filers:
Total income taxes paid: $1,258
Tax burden: 8.84%
Married couples filing jointly:
Total income taxes paid: $1,089
Tax burden: 7.65%
29. New Hampshire
Average income of the bottom 20%: $18,862
Single filers:
Total income taxes paid: $3,017
Tax burden: 16%
Married couples filing jointly:
Total income taxes paid: $2,386
Tax burden: 12.65%
30. New Jersey
Average income of the bottom 20%: $16,981
Single filers:
Total income taxes paid: $1,980
Tax burden: 11.66%
Married couples filing jointly:
Total income taxes paid: $1,537
Tax burden: 9.05%
31. New Mexico
Average income of the bottom 20%: $10,558
Single filers:
Total income taxes paid: $808
Tax burden: 7.65%
Married couples filing jointly:
Total income taxes paid: $808
Tax burden: 7.65%
32. New York
Average income of the bottom 20%: $13,020
Single filers:
Total income taxes paid: $1,244
Tax burden: 9.55%
Married couples filing jointly:
Total income taxes paid: $996
Tax burden: 7.65%
33. North Carolina
Average income of the bottom 20%: $12,761
Single filers:
Total income taxes paid: $1,103
Tax burden: 8.65%
Married couples filing jointly:
Total income taxes paid: $976
Tax burden: 7.65%
34. North Dakota
Average income of the bottom 20%: $14,804
Single filers:
Total income taxes paid: $1,384
Tax burden: 9.35%
Married couples filing jointly:
Total income taxes paid: $1,133
Tax burden: 7.65%
35. Ohio
Average income of the bottom 20%: $12,861
Single filers:
Total income taxes paid: $1,015
Tax burden: 7.89%
Married couples filing jointly:
Total income taxes paid: $984
Tax burden: 7.65%
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36. Oklahoma
Average income of the bottom 20%: $12,268
Single filers:
Total income taxes paid: $1,059
Tax burden: 8.63%
Married couples filing jointly:
Total income taxes paid: $939
Tax burden: 7.65%
37. Oregon
Average income of the bottom 20%: $14,622
Single filers:
Total income taxes paid: $2,185
Tax burden: 14.94%
Married couples filing jointly:
Total income taxes paid: $1,676
Tax burden: 11.46%
38. Pennsylvania
Average income of the bottom 20%: $13,887
Single filers:
Total income taxes paid: $1,622
Tax burden: 11.68%
Married couples filing jointly:
Total income taxes paid: $1,488
Tax burden: 10.72%
39. Rhode Island
Average income of the bottom 20%: $13,273
Single filers:
Total income taxes paid: $1,251
Tax burden: 9.53%
Married couples filing jointly:
Total income taxes paid: $1,015
Tax burden: 7.65%
40. South Carolina
Average income of the bottom 20%: $11,736
Single filers:
Total income taxes paid: $898
Tax burden: 7.65%
Married couples filing jointly:
Total income taxes paid: $898
Tax burden: 7.65%
41. South Dakota
Average income of the bottom 20%: $14,453
Single filers:
Total income taxes paid: $1,312
Tax burden: 9.02%
Married couples filing jointly:
Total income taxes paid: $1,113
Tax burden: 7.65%
42. Tennessee
Average income of the bottom 20%: $12,221
Single filers:
Total income taxes paid: $935
Tax burden: 7.65%
Married couples filing jointly:
Total income taxes paid: $935
Tax burden: 7.65%
43. Texas
Average income of the bottom 20%: $14,034
Single filers:
Total income taxes paid: $1,222
Tax burden: 8.71%
Married couples filing jointly:
Total income taxes paid: $1,074
Tax burden: 8.65%
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44. Utah
Average income of the bottom 20%: $19,112
Single filers:
Total income taxes paid: $3,027
Tax burden: 15.84%
Married couples filing jointly:
Total income taxes paid: $2,334
Tax burden: 12.21%
45. Vermont
Average income of the bottom 20%: $14,666
Single filers:
Total income taxes paid: $1,619
Tax burden: 11.04%
Married couples filing jointly:
Total income taxes paid: $1,201
Tax burden: 8.19%
46. Virginia
Average income of the bottom 20%: $16,508
Single filers:
Total income taxes paid: $2,129
Tax burden: 12.9%
Married couples filing jointly:
Total income taxes paid: $1,508
Tax burden: 9.14%
47. Washington
Average income of the bottom 20%: $17,314
Single filers:
Total income taxes paid: $1,801
Tax burden: 10.4%
Married couples filing jointly:
Total income taxes paid: $1,325
Tax burden: 7.65%
48. West Virginia
Average income of the bottom 20%: $10,504
Single filers:
Total income taxes paid: $1,124
Tax burden: 10.7%
Married couples filing jointly:
Total income taxes paid: $1,124
Tax burden: 10.7%
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49. Wisconsin
Average income of the bottom 20%: $15,311
Single filers:
Total income taxes paid: $1,617
Tax burden: 10.56%
Married couples filing jointly:
Total income taxes paid: $1,171
Tax burden: 7.65%
50. Wyoming
Average income of the bottom 20%: $15,572
Single filers:
Total income taxes paid: $1,493
Tax burden: 9.59%
Married couples filing jointly:
Total income and sales taxes paid: $1,191
Tax burden: 7.65%
Minimum salary needed: $86,807
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Cameron Huddleston contributed to the reporting for this article.
Methodology: In order to find the tax burden on the poorest 20% in every state, GOBankingRates first found each state's average household income for the lowest 20% of earners as sourced from the 2019 American Community Survey 5-year estimates conducted by the United States Census Bureau. Once this was found, GOBankingRates sourced the federal and state tax brackets from the Tax Foundation's 2021 data. GOBankingRates used an in-house income tax calculator to find the (1) total income taxes paid by the poorest 20% of each state and (2) the effective tax rate (tax burden) on each state's poorest 20%. GOBankingRates also found the Federal Insurance Contributions Act tax with its rate reported from Bloomberg. These calculations were done for a person filing their taxes as a single person and for a married couple filing jointly, using the standard deduction for each. All data was collected on and up to date as of Jan., 12 2021.
This article originally appeared on GOBankingRates.com: Here’s the Tax Burden on the Bottom 20% in Every State
